Perhaps nothing is worse than reading an insurance policy, even for lawyers and insurance folks. Hardly the stuff of Poe, Shakespeare or Tom Clancy. Yet many people involved in an accident have absolutely no clue what coverages are afforded to them under the automotive policy. So, at the very least, review your Declarations page. It's the page that lists (usually in columns) the amount of coverage you've got for each particular category. You should have liability coverage in case you have an accident with someone else and are at fault. North Carolina requires you carry "30/60" limits, meaning there's $30,000.00 per person, and $60,000.00 total for everyone that might make a claim against you in the accident. So, if you rear-end a bus full of nuns, and two of them are hurt, there'll be $30,000 available to each for their injuries, with a maximum of $60,000 available. This sounds like a lot of coverage, but really it is not - imagine if 10 nuns are hurt! Seriously, it's really not a lot of coverage to protect you if you ever mess up, and if the accident is serious, you can imagine the coverage will run out fast. (ie -If the other driver ends up in the hospital for a week with some broken ribs and a punctured lung, that $30,000 will be gone in a flash.)
You should also have collision coverage, protecting you for damage to your vehicle if you are in a wreck and it's your fault (or you just back into a light pole at the grocery store). This will have a "deductible", an amount you have to pay before the coverage kicks in, usually about $500. Quite often, I see folks who decided to save money by not getting collision, and then pay for it. Let's suppose some really bad driver hits your car and is clearly at fault. That does not mean his insurance carrier will pay quickly. Maybe he says you were at fault and they believe him. Where are you then? With no coverage, waiting for as much as a year while you litigate the case. And if your car has to be repaired, who's paying for it? You got it -you. Or you can drive around with a dented car until (hopefully) you win your case. Get collision coverage, it is worth every penny. Lastly, there are other coverages you can obtain, most importantly Underinsured and Uninsured coverage and medpay. We'll touch on these later, but for now, just know these are also worth having.
So, pull out your policy and find the page that lists what coverage you have. You are paying for it after all. If you don't understand what your coverage is, ask your agent or your insurance company. They will be glad to explain what you've got. At least then you know if you get into a wreck with a bus of nuns whether you've got to start worrying!
-Will
